The Palatka daily news. (Palatka, Fla.) 1884-1888, 1887-05-19
GOULD ON THE STAND.
He Testihes as to the Denver Pacific Transac-
tIons-4stounding Proposition 70 the
Gosernment-How Ne sas
Piayed on.


ton of Jay Gould was continued before
the Pacific Railway Commission to-day.
Commissioner Anderson desired to know
why it was more 20 the advantage of the
Consolidated Company to have Kansas
Pacific redeem Denver Pacific bonds in
stead of the trustees of the consolidated
mortgage. Mr.. Gould said:
''The Consolidated Company would
make new bonds and throw it into an
outside trust, and the scheme which was
agreed upon was the only one that could
have been made to the benefit of
the company. Not an individual made a
cent out of tins transaction of the Den
yer Pacific stock, and / am very glad of
the opportunity to put final nail in that
coffin. The giving of the consolidated
stock to the trustees would not have
been so good an arrangement. 1t would
have been voluntary and unnecessary
addition to the sinking fund and would
have been pledged for the payment of
the bonds. BY the release of Denver
Pacific stock from the trust, the Consol-
idated Company was able to use it in the
acquirment of the Kansas Pacific
branches. 1t was used for that purpose
and those branches We're bought of me
according to prior agreement. | had
been committed to the consolidation be-
fore the interview with the Boston peo-
pie and after my acquisition of Missouri
Pacific felt as though it would be a
Lott ,npf to mn " Ir>ta re m
tension of the Missouri Pacific to Denver
and San Francisco, as i contemplated.
would have destroyed the Union Pacific.
do not think it would have been a
proper thing for the director of one cor
poration to design the extention of an
other line which would ruin the ones of
which he was director.
WANTED TO BUY THE GOVERNMENT OUT.
Il have thought of the rights of the
Government often, but after the passage
of the Thurman bill and its approval by
the Supreme Court, thought the Gov
ernment was trying to squeeze more out
of the turnip than there was in it, and
my plan then was to build road from
Omaha to Ogden, just outside the right
of way, for SIS, 900, 900. With reference
to the Governments claim, made an
offer before the Judiciary Committee of
the Senate to pay the entire claim in cash
at its present worth. Sidney Dillon was
with me when the offer was made"
Mr.. Anderson questioned that such an
offer was made, as the Commission had
been unable to find any record of it.
but it was made, and i made it," re-
piled Gould. mo action was taken On
the proposition. prepared my resigna-
tion as a director of the Kansas Pacific
at the same time with that of director of
the Union Pacific. wanted to be free
from complications of dictatorship and
trusteeship to complete the dealings"
HOW HE WAS FOOLED.
In purchasing the Central branch of the
Union Pacific Gould told of the way he
was fooled by Oliver Ames and Presi-
ident Pomeroy of the road. He was build
ing the Junction City and Fort Kearney
road, parallel to the Central branch and
Ames and Pomeroy came on to New
York to sell him the road. They took
Gould back with them to show him over
the road and he said he was very
much impressed with the amount of
business being transacted. At every
station they passed long freight trains
and were continually side tracked to al
low trains to pass He bought the road
but found afterwards that the central
branch people had held back freight for
about ten days before his visit and
then rushed it all over the road at once.
The witness said he sold his stock for
just what he put it in the consolidation
for and if there was a profit of $16, 600, :
600 realized by the pool, the lawyers
must have got it. He turned his Denver
and South Park and Utah Northern
stock into the Union Pacific at cost
price. He knew of no occasion when
| the securities of the Union Pacific were
used to influence legislation at Washing
| ton.
The examination will be continued to-
morrow.